Transcription

1 Procuring and Financing Energy Efficiency September 20, 2011

2 Oro Valley, Arizona Located just a few miles north of Tucson, Arizona Incorporated in 1974 with 1,500 residents Over 41,000 residents today Biotech and retail as dominant industries Santa Catalina Mountains Town of Oro Valley 9/22/2011 2

10 Measurement and Verification and a Guarantee If the M&V report reveals a shortfall in annual energy cost savings, the ESCO (Energy Services Contractor) is liable for such shortfall, and shall pay to the Town the shortfall up to the life of the performance period. 9/22/

21 Key Provisions of CREBs Hiring Incentives to Restore Employment Act approved in 2009 provides a DIRECT PAY subsidy Initially structured as tax credits Bonds issued on a taxable basis with estimated 70% federal subsidy. Subsidy received on each bond payment date 100% of bond proceeds spent within three years or funds will be re-allocated September 2012 keep an eye out! Amortization period limited to years Davis-Bacon wage requirements 9/22/

22 The Electric Utility and Performance Based Incentives What is the bid process? Why is it so important? Biggest funding source Locks in rate for energy production, per Kw = must be producing, maximize Kw through tracking & maintenance 9/22/

36 Project Results: Environmental Annual greenhouse gas emissions from 258 passenger cars, or CO 2 emissions from the electricity use of 184 homes for one year, or Planting and growing for 10 years 36,895 trees/year, or Greenhouse gas emissions avoided by recycling 461 tons of waste instead of sending it to the landfill 9/22/

37 Project Results: Leadership 9/22/

38 Project Results: Leadership and Education Video Screen 9/22/

39 If I Knew What I Know Now Contract must do s Manage expectations The ESCO and utility as partners Contingency reserve Track your own results Internal and public outreach 9/22/

40 Key Points to Take Home Project is 100% self-funded Energy cost savings are guaranteed by performance contractor for a price Invest in Town infrastructure instead of maintaining current utility expenses Know the pro s and con s of performance contracting Outreach. Outreach. Outreach. 9/22/

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